THORChain’s governance system relies on a network of 111 active nodes, each required to bond at least 300,000 RUNE as collateral. Major decisions, such as software upgrades and economic changes, require approval from two-thirds of these nodes, ensuring a decentralized decision-making process. The protocol uses a tool called Mimir to adjust network parameters without needing a full software upgrade, allowing for more flexible governance.
Proposals for changes start with open discussions on Discord, where developers and community members refine ideas before they reach the voting stage. Once a proposal is ready, nodes vote on whether to adopt the next software version, with at least 74 votes needed for approval. Economic decisions, like fee changes, follow the same two-thirds voting threshold, while operational decisions, particularly those involving security, require just three node votes.
THORChain also includes automated safeguards, such as node rotation every three days, where the oldest active node and the one with the most slash points are removed. Additionally, the network automatically halts swaps if it detects insolvency, ensuring user protection without needing node approval. This combination of community-driven governance, operator voting, and automated protections helps maintain the network’s security and operational standards.